Ruling in favour of Danske Bank in the Hafnia case

28-06-2002

Today, the Danish Supreme Court ruled in favour of Danske Bank, Hafnia's insolvent estate and the company's auditors in a leading test case on liability for the insolvency of the ailing insurance company Hafnia in 1992.

In the Supreme Court, the group's auditors were represented by attorney Henrik Holm-Nielsen from Plesner Svane Grønborg.

In 1999, the Copenhagen Maritime and Commercial Court ordered those responsible for the prospectus - Danske Bank and the group's auditors - to pay damages to the investors.

But the decision was appealed and today the Supreme Court ruled in favour of Danske Bank, Hafnia's insolvent estate and the company's auditors.

Before Hafnia collapsed, Danske Bank arranged for a capital injection by selling new shares in the amount of close to DKK 2bn. Three weeks later, the shares were worthless because of various factors which according to the plaintiff should have been mentioned in the prospectus.

However, the Supreme Court found that the prospectus was not inadequate in such a way that any of the people involved were liable in damages. It appeared from the prospectus that Hafnia was in serious financial trouble.

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